05/05/2026

TUESDAY | MAY 5, 2026

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Palm-based biodiesel production to start in June

Budget changes will not harm vital public services: Anwar PUTRAJAYA: Seri Anwar Ibrahim has said ongoing adjustments to the country’s operating expenditure will not compromise essential public services, particularly healthcare and education, even as the government tightens fiscal discipline across ministries. He said core priorities, including the recruitment of medical personnel and the expansion of basic health infrastructure, will continue normally. “Only the scope of more luxurious hospital facilities will be scaled back.” He stressed that the government remains committed to strengthening public healthcare delivery, particularly in ensuring adequate manpower and expanding access to facilities in areas of growing demand. On education, he said funding adjustments will not affect efforts to accommodate student intake, especially at the primary and secondary levels. Anwar noted that although the Education Ministry’s overall expenditure has been reduced, essential infrastructure such as classrooms will continue to be built as planned. He criticised what he described as premature public reactions to the restructuring exercise, saying some commentary has been based on incomplete or inaccurate information. He said the cost-cutting measures are aimed at reducing unnecessary and excessive spending, rather than impacting frontline services. He pointed to overseas courses, high-cost events and non-essential development projects as among the areas being reviewed. Anwar added that courses that can be conducted locally will be held within the country, while official programmes are encouraged to take place at ministry premises instead of luxury hotels. “Construction scopes that exceed normal requirements will be scaled back.” Recently, the Finance Ministry issued guidelines to ministries and agencies to restructure operating expenditure as part of broader fiscal prudence efforts. Under the revised allocations, the Health Ministry is set to see a RM3.06 billion budget reduction, equivalent to 6.6% of its RM46.5 billion budget for this year. Proposed cuts of RM2.39 billion to the Higher Education Ministry have also been outlined. The reductions have sparked public concern and debate, with questions raised over why key sectors such as healthcare and higher education are facing significant adjustments, given their central role in public service delivery and national development. Anwar urged civil servants to play a more active role in explaining government policies, particularly subsidy rationalisation, to address misinformation. He said misunderstandings often stem from incomplete interpretations of data circulating on social media. He stressed that fiscal and subsidy reforms should not be seen as purely technical matters confined to economists and financial officers, adding that communication gaps often distort public understanding. On energy security, he said Malaysia’s fuel and supply situation remains stable despite global volatility, with external pressures driven by geopolitical tensions and rising shipping and insurance costs rather than domestic shortages. Anwar defended the government’s targeted subsidy approach, saying assistance is being directed to those most affected, including fishermen, farmers and logistics operators, rather than a blanket subsidy system. He added that Malaysia’s energy security is supported by diplomatic ties with producing countries, including Iran, Russia, Turkmenistan and Uzbekistan, ensuring continuity of supply routes. Despite global uncertainty, Anwar said Malaysia remains resilient and continues to attract major investments in energy and high-technology sectors such as AI and data centres. Prime Minister Datuk Ű BY HARITH KAMAL newsdesk@thesundaily.com

o Move is part of govt energy agenda, aims to connect national commodity strength with future of rural economy, says DPM

the current economic conditions and geopolitical tensions in West Asia. He said the ministry has received RM12.49 billion under this year’s budget, but every ringgit spent must produce clear outcomes for the people. “Whatever budget is given, we must use it at the optimum level. That is why I want every ringgit spent to be translated into clear results.” Separately, Zahid touched on political sentiment towards rural development agencies, stressing that the ministry could no longer be seen as just a “kampung ministry”. He said agencies such as Majlis Amanah Rakyat, the Rubber Industry Smallholders Development Authority, Central Terengganu Development Authority, Felcra, Felda, Kedah Regional Development Authority and other regional development bodies have long contributed to rural development. He said many of these agencies have historical roots in Umno’s long struggle and their role should not be dismissed because of political sentiment. “Do not plant hatred just because we hate. Do not simply follow what people say, what people write or what goes viral. Virality is not reality. Look at reality.”

Ű BY FAIZ RUZMAN newsdesk@thesundaily.com

(Felcra), Central Terengganu Development Authority, South Kelantan Development Authority and Federal Land Development Authority (Felda) must view the potential seriously, he noted. Zahid also said rural communities are exposed to global economic pressures, including rising input costs faced by smallholders and rural producers. He said the majority of the 8.1 million people in rural areas would feel the impact of an uncertain global economy. Citing the rubber sector, he said the cost of rubber seedlings has increased from RM2.74 to RM2.90, while fertiliser costs have risen by between 40% and 50%. He noted that subsidies still have a place, but rural policy cannot stop at aid alone. “We must move from merely helping to building systems, from subsidies to ecosystems, from programmes to markets. “This group does not only need assistance. They also need a fair market, a shorter chain, more transparent prices and buyers who can give confidence.” However, Zahid said ministries should not assume higher allocations next year, given

PUTRAJAYA: Palm-based B15 biodiesel production will begin through 19 plants from June 1 as part of efforts to link Malaysia’s commodity strength with the rural economy and help lower diesel prices, announced Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi. Zahid, who is also Rural and Regional Development minister, said he has personally offered to chair a high-level committee on biodiesel production, which involves cooperation with 10 ministries, departments and agencies. “The decision is meant to help lower diesel prices in the country,” he said at the Rural and Regional Development Ministry monthly assembly yesterday. He said palm-based biodiesel should not be viewed merely as part of the government’s energy agenda, but also as a way to connect the country’s commodity strength with the future of the rural economy. Agencies such as the Federal Land Consolidation and Rehabilitation Authority PUTRAJAYA: A delayed radar installation on Sabah’s east coast is raising alarm over potential surveillance gaps along Malaysia’s maritime border. The Pulau Malawali Remote Sensor Site (RSS) project must be expedited, said Home Minister Datuk Seri Saifuddin Nasution Ismail, stressing that security-critical developments cannot be treated as routine projects when delays could weaken national defence. “The bottom line is that the radar in Pulau Malawali must be expedited. If we provide this capability, we could improve our ability to monitor our security areas. This is a priority. “If it could be completed according to schedule, there would be no more blind spots in the area. This is the number one need,” he said at the Home Ministry monthly assembly yesterday. Saifuddin said he has visited several border locations over the past two weeks, including Bukit Kayu Hitam, Padang Besar, Pulau Gaya, Mantanani, Pulau Balambangan and Pulau Malawali to assess operational requirements on the ground. He said Sabah’s east coast comprises 14 inhabited islands and 48 uninhabited ones, underscoring the urgency of strengthening surveillance capabilities in the area. He added that the effectiveness of enforcement agencies along the border depends heavily on assets and radar systems, particularly in securing timely intelligence on potential threats. Saifuddin also revealed that six General Operations Force (GOF) control posts in the same area have been approved, but emphasised that delays in their completion could undermine operations. “The GOF needs better and more proper posts, complete with strategic locations and teams ready to be deployed. But if the posts are not ready, that is not good.” He reiterated that security-related projects must be handled with greater

The event was officiated by Zahid at the ministry’s headquarters yesterday and attended by senior ministry officials, including newly appointed secretary-general Datuk Suriani Datuk Ahmad, who was previously Health Ministry secretary-general. Security project delays raise concerns on maritime border safety

Saifuddin (second, left) said six GOF control posts in the same area have been approved, but noted that delays in their completion could undermine operations. – AMIRUL SYAFIQ/THESUN urgency as delays could directly compromise border control. He said the ministry has worked on the improvements for years and is now entering the implementation phase.

“If it is a project with major security needs, it cannot be implemented according to the usual key performance indicators. “Delays in projects with security elements could cause us to compromise on border security control.” The Pulau Malawali RSS project was previously reported to involve an allocation of RM88 million under the first rolling plan of the 13th Malaysia Plan. Separately, Saifuddin said June would mark a key transition in the rollout of upgraded identity documents, including the MyKad and passport, under reforms by the National Registration Department. “We are waiting for June as an important transition point. “That is when we will show the important documents, whether identity cards or passports, which will use the latest security features,” he noted.

“At every stage, we will issue documents that are new in nature, with better security features. We have worked for a long time towards this and now the time has come.” The assembly also saw the launch of Sistem Pengurusan Warganegara Malaysia, a digital platform aimed at enhancing the security, transparency and efficiency of citizenship-related services, particularly for Malaysians abroad. A montage shown during the event noted that the department last received approval for new posts in 2013, with fresh approval now secured after more than a decade as part of efforts to strengthen its registration officer scheme. Also present were Home Ministry secretary-general Datuk Dr Awang Alik Jeman and department director-general Datuk Badrul Hisham Alias. – By Faiz Ruzman